Cryptocurrencies are once more taking the limelight of traditional currencies. Despite the US NFP report traditionally being hailed as a prime event for currency markets, it is hard for most to understand today’s price action in the EURUSD. Today’s trading in Litecoin is however as straight forward as it can be.
With the behemoths, Bitcoin, and Ethereum recuperating large parts of their summer losses, coins such as Litecoin have been lagging, but this looks to change starting from today.
Earlier today, the Litecoin price triggered a double top pattern or a cup and handle pattern. The vital level to watch was the June 4 and August 23 highs at approximately $194.29. While the two highs did not align perfectly, the price action following the break to $194.29 shows that this level was significant. The two chart patterns, which share the same price objective of $280.82, will now remain in play as long as the LTCUSD trades above today’s low of $178.93.
For traders that bought LTCUSD at the breakout point at $194.29, the risk-reward ratio is 5.52, or an upside of 44% and a downside of 8%. Traders that did not buy already will need to wait for a correction toward the breakout unless they would like to trade at a lower risk-reward ratio.
Other coins showing a similar pattern but still have not been triggered are BSVUSD, BATUSD and VETUSD. A breakout in these pairs might happen as early as today, but more likely this weekend.
LTCUSD Daily Chart
High-risk investment warning: Trading Foreign Exchange (Forex) and Contracts for Differences (CFDs) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Any opinions, news, research, analysis, prices or other information contained in this presentation is provided as general market commentary and does not constitute investment advice.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.